…demand for fibre services is greater than anticipated at this stage of the rollout, and the proportion of fibre customers on 100 Mbps or higher plans is also ahead of expectations. Uptake has now passed 20%, and ultimate uptake in New Zealand will be well in excess of the 30% target of the private investor in the Netherlands.Howell is critical of government involvement in telecommunications. She is an academic and comes at the subject from a hard economic perspective.
In the early part of the build, uptake is low, because retail service providers do not actively promote fibre services. If only 10% of the customer base has access to fibre, there is no business case to invest in services which 90% of the customer base cannot receive.Patterson overlooks VDSL, but otherwise he offers a neat summary of the current state of fibre in New Zealand.
A tipping point typically occurs at about the 35% penetration mark, when service providers perceive that the available market is of sufficient size to justify launching new services. In New Zealand this tipping point was reached in March 2015, when the fibre network passed 600,000 homes, at which point Netflix entered the New Zealand market.